Is marriage the easiest way to legally settle your... financial and legal affairs?

[hairytale]

...affairs so that DP inherits?

We have a 5 month old DD. We live each other and intend to stay together - both early forties.

I own a house (currently rented out). If something happened to me I presume mortgage company would sell and whatever left would be put in trust for DD while DP and she couldn't get hold of it til she reached 18?

DP will become a sahd and work at home p/t in October and I will be the main earner.

I'm presuming getting married would be the simplest way of dealing with this and ensuring DP got the house (it would be a very basic wedding - us, DD and two witnesses - and possibly a party afterwards for family).

I'm going to look into life insurance too.

Having just lost my DH I'm so glad we were married. It's only when the worst happens that you realise what a difference it makes. Definitely get life insurance. All of these things have made an awful, awful time easier to deal with.

I'm in similar situation. I paid a solicitor £150 to draw me up a will. Easier than getting married for me because we were both making a will anyway when we had DD (in case the worst happens and we're both killed in a car crash or something - wanted to make sure our wishes for our daughter were clear).

Thanks. So sorry for your loss Ican

yes, it is easiest - but does DP have any other children? because if you die first, then him, any money will be shared between all his heirs, so your DD would get less than now.

oh and i'm not sure step-children inherit unless adopted... you'd have to look into that to make sure anything your DP inherits from you eventually does go to your DD. (if he's not her farther).

No, DD is a first child for both of us.

I have a DSD from a previous marriage and I want tO make some provision for her too ... DP would honour any wishes I have.

Everyone should make a will whether they are married or not. Making a will does not cover everything.

Do read this:

www.advicenow.org.uk/living-together/

Oh user there is another thread here On the exact same topic! :)

www.mumsnet.com/Talk/small_business_ads/1507084-MARLOW-WILLS-Professional-Qualified-Will-Writers-Rated-5-by-Mumsnetters

Sets out the reasons for making a will, whether you are married or not.

Particularly for anyone in a blended family, it's important to make binding provision, otherwise the survivor could make a will disposing of the joint estate in a way which excludes the children of the deceased spouse.

In our case, neither of us has any other DC - just our DD together.

Definitely make a will. This sounds bitter and cynical, but if you want someone (e.g. your DSD) to be specifically provided for, put it in the will. Don't rely on someone else (your DP) "honouring your wishes" Good people do bad things, especially when under emotional pressure.

One thing no-one has yet mentioned is the issue of inheritance tax. If you die and leave your estate to your husband, it is treated as "no transfer" for IHT purposes and so there is no tax to pay. If you are not married, this does not apply and your DP will have to pay IHT on your estate above c £350k - obviously this is not an issue for most people, but worth mentioning.

Re life insurance- check because it's likely you already have this in relation to the property you own as it's usually a pre-condition of the mortgage- i.e. your life insurance pays off the mortgage in the event of your death.

Richman is correct, however the single person's IHT threshold is only £325k, not £350k.

The spouse's exemption applies only if the whole estate passes from one spouse to another.

Remember also that eventually, IHT will be payable on everything over £650k on the joint estate ie on the second death at 40% so it's a good idea to start tax planning in your early sixties when hopefully your mortgage is paid off, kids off your hands, etc.

Also, if you have life insurance, be prepared for questions if you want to make your unmarried partner the beneficiary of the policy. I didn't change my surname when I married, and there was much to-ing and fro-ing of letters, culminating in my sending a copy of our marriage certificate, before the insurance company would agree to make my husband the beneficiary. (This was after our children were born and I knew that if I died, my husband would need money to pay someone / some people to do all the things I did for nowt.)

The other reason to make a will is that while someone may WANT to honor your wishes, legally they might not be able to do so. The rules if you don't have a will are pretty strict.

Make a will. Much cheaper and easier than getting married. You can also make provision for the care, education and other needs of your dc should you both go. And plans for if you all are wiped out. The estate gets dealt with faster I think if there is a will.

You need a will whether married or not, but a lot also depends on the size of the estate. If your estate is worth more than the IHT threshold, you can make all the provision you like but your partner still won't benefit from any exemptions. And be aware that if you die without a will, intestacy provisions kick in. Unmarried partners do not do well from these, even those who were being financially supported by the deceased! If you have an unmarried partner who you financially support and you don't want to marry them but would want them to benefit from your estate, you absolutely need to spell this out in a will.

Get married and make a will. Particularly if you have assets which could drive you over the IHT threshold.

btw I'm running a discount for Mumsnetters at the moment (see ad on Small Business classifieds).